A growing number of studies investigating the linkage between HRM and employee well-being largely supports a positive perspective on HRM (HRM positively affects employee well-being). There is only a limited body of empirical evidence that supports a critical perspective (HRM negatively affects well-being), or combines both perspectives. The present paper contributes to an understanding of the relationship between HRM and well-being, by testing both perspectives simultaneously. Following a positive perspective, we explore how HRM may enhance employee well-being via a climate for well-being; following a more critical perspective, we explore how HRM may negatively affect employee wellbeing via a climate for efficiency. Data from a Long-Term Care organization (N = 415 employees; 52 wards), provided support for the mediating role of a climate for well-being in the relation between HRM, ward commitment and need for recovery. In addition, climate for efficiency partially mediated the relationship between HRM and ward commitment, however the direction of the mediation was different than expected. Although the results of this study support a more optimistic perspective on HRM, it is argued that organizations need to be aware of the critical pathway in order to enhance employee well-being.